It is not known why there is no multiple tag exclusion. A plausible explanation would be, that it would cause undue server load. If there is a ddos, complex tag browse queries are the first to not work. Like, browse for 2-3 tags, and it work. Browse for 4 or more tags, and the server does not respond. A hint is also, that the 1 tag exclusion only works for users that are logged in. They way Itch's system works under the hood probably cannot deal with the concept of exclusion. Not efficiently at least.
Steam has an ignore button for games and they do have a persitent exclude feature, yes. But they also have a maturity setting with like 4 different shades and only a hundred tags or so, and those tags are rather accurate.
On Itch there are probably 10000 tags. Some with only 1 game. And most tags are inaccurate or redunant. Excluding things on tag basis is just not a concept that works well on Itch, even if there were a ready tool. A user might not get what was expected.
Most people probably just want to declutter the front pages. And because there is so much horror and visual novels, they think that exluding tags is the solution. But the never show me this again button works wonders there and is more flexible too. It is basically a custom css that hides individual games and you can add games to that list by the press of a button.
You can hide the games you already know or are in your library with it. I really should rewrite the page and create a screenshot for it. But I have trouble showing things that are not there.
That hide button script is so much more powerful than mere tag exclusion - and if you really want to, you can simulate a multiple tag exclusion with it. Just browse positive and hide every result. You can scroll down and up again and then press and hold the hide button. Does like a hundred games a second or so. The script has basic import and export function for 2 lists.